What is the Brazilian Real (BRL)?
BRL is the currency abbreviation for the Brazilian real (BRL). The Brazilian real consists of 100 centavos and is often represented by the symbol R $. As of September 14, 2021, US $ 1 is equivalent to approximately 5.26 BRL.
- The Brazilian Real (BRL) is the national currency of Brazil.
- The BRL consists of 100 centavos and is often represented by the symbol R $.
- The Brazilian real was first adopted as the official currency in July 1994 and replaced the Kurzeiro real at a rate of 1 to 2,750 reals.
- The BRL was fixed at the US dollar from 1994 to 1999, when inflationary pressure forced the real to fluctuate partially against the dollar.
Understand the Brazilian Real (BRL)
The Brazilian real (for multiple reasons) is regulated by the Monetary Policy Committee (COPOM) of the Central Bank of Brazil (BCB). It was first adopted as the official currency in July 1994 and replaced the cruzeiro real at a rate of 1 to 2,750 cruzeiro reals. This change was compliant with Plano Real (“Real Plan”). In 1994, the real thing was fixed in US dollars. This continued until 1999, when inflationary pressures caused partial fluctuations in the real deal against the dollar.
After its introduction, the growing economy attracted large capital inflows and the central bank intervened to stabilize the rise, strengthening the real dollar against the US dollar. But in the second half of the century, when Brazil’s economy cooled, its real value fell with most emerging market currencies.
Multiple commemorative coins have been produced by the central bank. The latest is one real coin from the 2016 Summer Olympics and the other is the Central Bank of Brazil’s 50th Anniversary coin. The central bank has issued a total of seven commemorative coins since 1995. Currently, there are 6 types of real coins in circulation: 1, 5, 10, 25, 50 centobos, and one real coin.